In a presentation Australian economist Steve Keen delivered recently in New Zealand, he describes how, prior to the GFC, he was compiling data for his role as an expert witness in a predatory loan case for NSW Legal Aid. Looking to parse the accuracy of a claim that private debt to GDP had been rising “exponentially,” Keen found that the data indeed showed a near perfectly exponential rise from 1964 on—a clear warning sign that such a trajectory was unsustainable.
Although Australia and New Zealand fared better in the GFC than did Europe or the U.S., Keen’s subsequent research into UK and U.S. Treasury data show that while the U.S. experienced a sharp dropoff in private debt, the UK is rather among the worst countries in terms of aggregate private debt to GDP, and Australia has yet to see a significant turnaround; though when it does, it will call into question the viability of an economic model premised on such growth.
View the video below, or read the original post here.
4 Responses to “Steve Keen: Should We Be Worried About Australia’s Private Debt Level?”
short ralph lauren • December 5th, 2012 at 8:46 am
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lilymuirden • January 12th, 2013 at 9:00 am
There are many people who really love being in Australia. There are many activities that can be done there. But most people are actually on vacation.
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ReiBroze • January 19th, 2013 at 5:47 am
You can worry about something you have not faced. One is when you are in Australia. There are many things that you do not get in there with the country here.Hunting in Texas
LeoKotasi • January 23rd, 2013 at 6:04 am
I really like to be there. The story is told by many people that you can see many beautiful things, including the people who live there and desert.Beowulf Clusters
